The main U.S. stock market indexes gained 0.4-0.5% on Wednesday, extending their short-term move up as investors reacted to some better-than-expected quarterly earnings releases. The S&P 500 index remains close to its July 3 all-time high of 1,985.59. It is still above two-month-long upward trend line, which is positive.

The upward trend line is a straight line that is drawn under pivot lows to show the direction of price. Trend lines are an important tool in technical analysis for both trend identification and a confirmation. As long as price remains above the upward trend line, the uptrend is considered intact. The resistance level is at around 1,980-1,985, and the next resistance is at the psychological 2,000. On the other hand, the level of support remains at 1,950-1,960, marked by recent local lows. There have been no confirmed negative signals so far, as we can see on the daily chart:

Expectations before the opening of today’s session are negative, with index futures currently down 0.3-0.5%. The European stock market indexes have lost between 0.5% and 0.9%. Investors will now wait for some economic data announcements: Initial Claims, Housing Starts, Building Permits at 8:30, Philadelphia Fed index at 10:00 a.m.